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When an estate plan should be updated

On Behalf of | Feb 2, 2021 | Estate Planning

One of the most common mistakes people in Delaware and around the nation make is crafting their estate plan and never touching it again. Yes, estate plans are created for when you ultimately pass on or are incapable of dealing with your estate. However, that does not mean you ignore it for the rest of your life. This is especially true for those who have created it at a young age. But when exactly should it be updated? Read on to learn further about the moments in life which would require a person to update their estate plan.

Introduction of children

As stated above, if you’re a young person who has created their estate plan early on, it’s likely that children are going to enter the picture later on. This is incredibly important to keep in mind as you do not want to leave out children from inheriting your estate. Failure to update can lead to siblings fighting against each other (and other family members) in court once asset distribution begins.

Divorce

When couples are going through the estate planning process, they are likely not thinking about divorcing in the future. However, if divorce does unfortunately occur, it is critical that you quickly begin updating your estate plan. The reason for that is because your former spouse’s name will still remain within the plan, thus allowing them to collect what you added to it while married. This, of course, would not sit well with the rest of your family members and potential new spouse.

Increase in assets or funds

If you open a new business or see a big gain in your stock market investments, an update is definitely warranted. Increases in assets such as real estate or a business must be added to your original estate plan. This allows you to have peace of mind that your business will continue to operate properly and in the right hands after you’ve passed on.

Properly updating your estate plan can be a tedious process to go through. That is why it is important to work alongside an experienced accountant and attorney as a means of ensuring that all your intentions are clear and legal.